During this call we will discuss certain non-GAAP financial measures that defined by the SEC Regulation G. The reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure is included in the press release and a supplemental 8-K filing for the quarter, which are posted in the Investor section of the Company’s website at www.macerich.com.
Joining us today are Art Coppola, CEO and Chairman of the Board and Tom O’Hern, Senior Executive Vice President and Chief Financial Officer.
With that, I would like to turn the call over to Tom.
Thank you, Jean. Today we are going to be discussing the second quarter results, our capital activity and our outlook for the rest of the year.
We continue to see strong improving fundamentals in our business. Retail sales had another strong increase and same –center ROI was positive for the tenth quarter in a row.
The re-leasing spread showed double digit increases again, in addition, occupancy was up 30 basis points compared to a year ago, at a very healthy level of 92.7%.
During the quarter we signed leases for 266,000 square feet, average starting run of 45.64 and a positive re-leasing spread on a trailing 12-month basis of 165.
The occupancy of 92.7% was up 60 basis points sequentially compared to the March 31
occupancy level, a strong gain for the quarter.
Occupancy cost as a percentage sales came in at 12.7 for the trailing 12-months. That’s down compared to 13.2 at June 30
of last year.
FFO adjusted which excludes the impact Valley View and Prescott was $0.74 a share. The operating results for the quarter included same-center NOI excluding termination revenue and SFAS 141 was up 2.9%.
Management company expenses were up for the quarter at $23.7 million. However, that has to be looked at on a year-to-date basis due to timing differences. Year-to-date, management company expenses are $46.3 million compared $46.7 million for the same period of last year.